Finance Bill 2017 – draft legislation

The Finance Bill 2017 draft legislation was published on 5 December 2016. The Bill contains the legislation for many of the tax measures that have been announced by the government. The Bill is open for comment until 1 February 2017 with the final details being confirmed in the spring Budget 2017.

The majority of the measures in the Bill were announced as part of the Autumn Statement on 23 November 2016 as well as changes announced at Budget 2016 which have not already been enacted. The Bill is likely to receive Royal Assent in the summer of 2017 with most measures taking retrospective effect from the start of the new tax year on 6 April 2017.

The March 2017 Budget will be the last to be held during springtime with a second Budget taking place next year in autumn 2017. The Budget cycle will continue from autumn 2018 and beyond. There will be some transitional changes as the new timetable is introduced.

From April 2017, the personal tax allowance is due to increase from the present £11,000 to £11,500. From the same date, the amount you can earn at the basic rate of tax will rise from £43,000 to £45,000. The Chancellor also committed to increasing the basic personal allowance to £12,500, and the higher rate tax threshold to £50,000, by 2020-21.

Other measures include the retention of the starting rate of savings Income Tax band at its current level of £5,000 for 2017-18, indexing the personal allowance in line with the Consumer Price Index once the £12,500 figure has been reached and increases to the ISA, Junior ISA and Child Trust Fund subscription.

There will also be changes to business tax, non-domicile rules, National Insurance thresholds alignment from April 2017 as well as the abolition of Class 2 NICs from April 2018.

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